hy we buy is a difficult question to answer. But, we have to start somewhere. Spending behavior is complex and many of us have never considered why we spend money the way we do. Once we have some of the basic tools to evaluate our spending, we can make more informed decisions about whether to spend or whether to save.

AMERICA – SPENDERS, INC.Let’s face it. We love to buy things here in America. And, as Americans, if we are going to do something, we go all the way. To our credit, we have the numbers to show that we have done real well in the buying game. Just take a look: ➤ ➤

Kids as young as 18 months recognize product logos Kids watch an average of 40,000 TV commercials a year There are over 15,000,000 shopaholics in the United States According to a 2002 Stanford University study, there are an estimated 60 million Americans addicted to shopping Americans have one of the lowest savings rates among industrialized nations Americans rack up over $2 trillion in credit card debt per year

➤

Americans spend an average of 146 hours a year searching for things to buy, according to the Bureau of Labor Statistics A survey of 700 Money readers found that more than half had, in the previous six months, made a major purchase they regretted Two-thirds of all buys are unplanned according to marketing expert and author of Call of the Mall, Paco Underhill When we buy gifts for ourselves, we tend to spend more than we would if we were buying for someone else

➤

➤ ➤

➤

➤

➤

➤

A mom tells her son that she doesn’t have money to buy the toy. Her son responds saying, “Just put your card in that machine and it will give you money.”

Why We Buy RESOURCE MANAGEMENT

2

RESOURCE MANAGEMENTHave you ever considered how you spend your valuable resources of time and money? The world would be a very different place to live in if we only bought what we needed to survive. Instead, we spend money on goods and services for other reasons that produce conscious or unconscious emotions. We spend in different ways and with different amounts. And, we spend a lot of time doing it. Consider the way you spend time and money by doing the following exercise. You might find that you can make some changes in your life.

What types of products and services do you enjoy spending money on? • • •

How are you a “good” spender? • • •

How would you like to change your spending habits? • • •

“Chaaarge it!!”

3

Why We Buy WHO’S PUSHING YOUR BUTTONS?

WHO’S PUSHING YOUR BUTTONS?When the economy is not doing very well, we, as consumers, are encouraged to go out and spend. But, what influences our spending behavior? What is it that gets us to open our wallets? It must be more than politicians telling us to do our civic duty of spending to help the national economy. Well, in fact, it is. We tend to make purchases on things that fulfill desires and make us feel a certain way. If you want to change a spending behavior, it helps to understand what, and who is pushing your buying buttons. Consider these influences: ➤ ➤

The Media – We all know that the lifestyles presented in television and movies are not a reality for a majority of Americans. And yet, these images influence how we envision our level of success. In other words, we want to be like those we see in the media. If you don’t believe it, think about fashions and how they are introduced and adopted. The Proliferation of Consumer Goods – In America, we have the richest poorest people in the world. Even those of low to modest means have many material things. Stores in America are chock full...

YOU MAY ALSO FIND THESE DOCUMENTS HELPFUL

...Conversion rate of customers: what is the percentage of customers whom go to store and buy? For a conventional supermarket the rate is high but for others like musical instrument that rate is lower
Time customers spend:
+ Cosmetics: averagely 2 mins for non-buyers and 30s for buyers (=> they don’t prefer to take advice from sales consultant? )
+ Electric store: non-buyers 5 mins, buyers 9 mins
+ Toy store: buyer 17 mins, non buyers 10 mins (=> yes this is true, I spend lots of time in toy store when I have to buy gifts to my cousins/ niece because it reminds me of my childhood and I have to consider which will suit them)
The more time customers spend in shop, the more likely they will spend more => increase customers interaction with staff, the ambiance in store (slow, relaxing music)
Transition zone: customers need time (atleast 5-10s) to adjust to new environment with their 5 senses: smell, hear, see,… => if you put things right in front of the front door, they will ignore, if there are staff jump into customers asking if you need help, they also ignore.
=> advertising upfront doesn’t work, it is very costly to companies to advertise at the entrance of retail but the fact it that customers they just care how to got into the shop
=> products pile up (i.e. discounted items) to slow down customers in transition zone is a good idea
The bigger the basket, the more likely customers will buy more (it’s true!)
The importance...

...WhyWeBuy
Introduction
In an effort to discover whywebuy, Paco Underhill set out a mission using video equipment, store maps and customer profile sheets to gather research. Once his business began to grow he founded a consulting firm, Envirosell, and began to discover over 900 aspects between the shopper and the store. WhyWeBuy, gets down to the basics of how retailers and consumers interact. Each chapter takes the reader through a series of important tactics to remember when being involved in the business world. The science of shopping is introduced and opens the eyes of all consumers and places them on the edge of their seats. A variety of topics are discussed that would be beneficial to anyone involved in the areas of retail, marketing, advertising, design, architecture, and shopping.
Section I: Chapter I- A Science is Born Summary
WhyWeBuy begins with an example of a day in the life of a tracker, following a lady around her store noting all movements she makes. Shortly the question,” Since when does such a scholarly discipline even exist?” is asked in regard to the science of shopping. The answer to this question is deeply rooted in the study of anthropology. Anthropology has devoted a branch to the study of the modern shopper, and how the interacting with retail environments (not only...

...Chapter one
Abstract
Chapter one of “WhyWeBuy” mainly talks about five points: 1) what is the research method of the science of shopping and how does it to work; 2) “Butt-brush effect”; 3) the placement of products can greatly influence sales; 4) Congestion is a killer to sales; 5) Interception rate and conversion rate. These phenomenons are the most basic elements knowledge of the science of shopping. The main idea introduces reader to the science of shopping.
Research method of the science of shopping
The Research method of the science of shopping tries to continuously observe people's buying behavior through record monitor system in stores or tracker tailing after customers and noting everything they do to gather information such as the fact that female customers deliberate for a long time before making a decision. On the basis of a large amount of buying behavior information, which presented the diversity between different groups of people, it can be determined a customer whether will carefully read supplement factors before she buys cookies. Meanwhile, gender, age and educational level are the factors of purchasing power. Finally, the researcher uses this method to engage in a comprehensive analysis of customer’s consumption psychology to change the layout of a store which can promote the sales. That is the research method of shopping.
“Butt-brush effect”
The First, involves direct body contact. This...

...『WhyWeBuy』 Book Review
This book analyzes consumer behavior in terms of the response to store displays and atmospheres. Though we have learned in the text book that consumer behaviors differ from culture to culture, such as social class, national identity, personality, values, household influences, etc., 『WhyWeBuy』 mainly deals with the behaviors which world-wide consumers commonly show, except for the last few chapters. By suggesting specific examples of consumer’s movements and thoughts, the author reveals the scientific patterns or principles that we have not realize in our daily shopping lives.
『WhyWeBuy』 especially focuses on the exposure, attention, and perception, which belongs to the psychological core (one of the consumer behavior processes). It talks about the design and placement of signs that best allures the consumers’ attention, merchandise placement according to how we walk (we head rightward when entering), how to use customers’ perception (five senses) by using samples or aromas and by having clerks contact customers physically and emotionally, etc. The theory of consumers’ EAP (exposure, attention, and perception) which we have learned in class becomes important not just in the situation described in the book, but in personal...

...piece “Advertising Fifteen Basic Appeals. Jib Fowles, Bergen Evans, and Stephanie Ericsson all are components of how one can understand why people tend to buy products, and what entices us to be moved by a single commercial. Certain aspects of a product can induce really anyone to by something, it can be based on language, lies or just the way they advertise anything.
Language plays a major role, well at least according to Bergen Evans. “Words are the tools for the job of saying what you want to say”, so they are another form of explaining what needs to be said. One form of this is diction, diction can help a lot when trying to prove a point. Diction can identify the feeling that you want the reader or viewer to feel when reading or seeing someone. For example ,for advertising Miracle whip the creator of the product never says that its sour or tart. They say the taste is “sweet” and “tangy”, and the connontation related with these words are postive. It creates this idea that the taste is delicious and appetizing. Also by the use of certain words you can either sell a person or make the situation sterile and not convince someone to buy it. “Vocabulary is a tool which one uses in formulating the important questions of life the questions which must be asked before they can he answered”.
Lying also is essential when convincing people to buy a certain products. Stephanie Ericsson explains in her piece the different...

...﻿We are what webuy
Ryan (Shizhe Ruan)
9067614
We live in a modern world where full of mass consumption, after industrial revolutions, the new technology allowed productive forces to be improved significantly as the development of history. Companies gained the ability to quickly produce a great deal of material items. In order to make profits via these products or services they offered, they persuade people to purchase them by adopting different marketing means. As a result of technologically and financially prosperity, and of course the marketing force, a material consumption culture had been created and we can simply argue that we cannot live without consumption nowadays, it is not only about buying of what we need, its influence had extended to the identities of our-self due to that the power of marketing allows consumers to gain the signs of success, achievement, prosperity and so on, through their consumptions. Actually, we not only construct our identities based on what we purchased, but we use others’ consumption to infer their...

...﻿Possibly the Best Fit, “Why” and “How” people buy
All these novel applications offer customization to the buyers. More specifically, identify the benefits woven in the customization process in terms of “why” people buy. They can be those benefits already realized and the ones you would suggest to add.
Customization delivers a sense of accomplishment and personal value along with the custom made product.
1) People buy to get emotional benefits to show off, to connect, to feel special…
All these novel applications provide customization to the buyers and offer them emotional benefits to:
a) show off their creativity and originality through social platforms such as tweeter and Facebook
b) connect to the group or organization that they want to be a part of
c) feel special by having something personalized and unique and scarce
2) People buy to get physical/tangible benefits and favor products, services, and activities with better quality, durability, reliability, or reputation.
a) People buy some products, services, and activities solely because they cannot live without, such as food, shelter, clothing, transportation, etc.
b) More often people buy products, services, and activities that can improve their quality of life and make them happy, such as a new pair of jeans, an iPhone, and tickets to a concert.
To sum up,...